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🏢 Multi-Family Weights

Adjust section and question weights. Changes affect future evaluations only.

Section Weights
Location & Market
18%
Physical Condition
12%
Financial Performance
18%
Value-Add Plan
14%
Debt & Capital Structure
10%
Sponsor & Management
10%
Legal, Tax & Structure
6%
Risk Assessment
12%
Total Section Weight 99%

Section weights are relative — they'll be normalized to 100% during scoring.

Submarket job growth and population trends
%
Net in-migration? Major employers expanding? Job diversity?
Neighborhood desirability and livability
%
Walk score? Nearby retail, restaurants, parks? Crime rates?
Transportation and commute access
%
Near transit, highways, employment hubs? Average commute times?
School district quality
%
Top-rated schools nearby? Matters for family-oriented properties.
Landlord-tenant law environment
%
Eviction-friendly? Rent control risk? Local regulations?
Submarket rent growth trajectory
%
3-5yr rent CAGR? Outpacing inflation? Trailing or accelerating?
New supply pipeline and barriers to construction
%
How many units under construction? Zoning restrictions? NIMBYism?
Local economy diversification
%
Multiple large employers? Not dependent on one industry?
Comparable sales and market cap rate trends
%
Recent comp transactions? Cap rate compression or expansion?
Neighborhood trajectory — improving, stable, or declining?
%
New development nearby? Gentrification? Or signs of decline?

Question weights are relative within the section.

Structural condition of building(s)
%
Foundation, framing, exterior walls — any major concerns?
Age and condition of major systems
%
HVAC, plumbing, electrical, roofing — when last replaced?
Overall property maintenance quality
%
Well-kept grounds, clean hallways, responsive maintenance?
Unit mix and floor plan appeal
%
Good bedroom mix for the market? Modern open layouts?
Amenity competitiveness
%
Pool, gym, dog park, co-working, EV charging vs. comps?
Deferred maintenance and near-term capex
%
Any big-ticket items in the next 2-3 years? Estimated cost?
Parking adequacy
%
Enough spaces per unit? Covered/garage? Market expectation?
Energy efficiency and sustainability
%
Insulation, windows, LED lighting, water conservation?
Curb appeal and first impression
%
Would you want to live here? How does it compare to comps visually?

Question weights are relative within the section.

Going-in cap rate attractiveness
%
Above or below market? Justified by quality/location?
Year 1 cash-on-cash return
%
Target >6% for core, >8% for value-add. Where does this land?
Projected IRR over hold period
%
15%+ for value-add, 10%+ for core-plus. Realistic?
Equity multiple (MOIC) attractiveness
%
1.5-2.0x+ over 3-5 years?
Underwriting assumptions realism
%
Rent growth, vacancy, expense growth — conservative or aggressive?
Current occupancy rate
%
95%+? If lower, is there a clear plan to stabilize?
Rent upside vs. market (loss-to-lease)
%
Current rents 10-20% below market? How quickly can you close the gap?
Operating expense ratio
%
40-50% is typical. Higher means room for improvement or a red flag.
T-12 vs. pro forma reliability
%
Is the trailing 12 clean? Big gap between T-12 and pro forma NOI?
Sensitivity analysis — downside protection
%
What if rents are flat? Vacancy goes to 10%? How bad does it get?

Question weights are relative within the section.

Interior renovation rent premium
%
What's the rent bump per unit after reno? $100/mo? $300/mo?
Renovation cost and timeline realism
%
Cost per unit? Can you turn units on vacancy or need relocations?
Exterior and common area improvement impact
%
Lobby, landscaping, signage — will it lift the brand?
Operational efficiency improvements
%
Can you cut costs? Better vendor contracts? Tech-enabled management?
Occupancy upside potential
%
Below-market occupancy? Fixable with better marketing/management?
Ancillary revenue opportunities
%
RUBS, pet fees, parking premiums, storage, valet trash, package lockers?
Property tax reassessment risk
%
Will purchase price trigger a tax reassessment? Impact on NOI?
Repositioning or rebranding potential
%
Can you move the property up a class (C to B)? New name/brand?
Track record of similar renovations in the submarket
%
Have comps successfully executed similar plans?

Question weights are relative within the section.

Financing terms attractiveness (rate, LTV, IO)
%
Fixed or floating? IO period? Rate relative to market?
DSCR comfort level
%
1.25x+ comfortable. Below 1.15x is tight. Day-1 coverage?
Leverage appropriateness
%
65-75% LTV typical. Higher = more risk. Match to strategy.
Loan covenants and prepayment flexibility
%
Yield maintenance? Defeasance? Lock-out period?
Debt term matching business plan
%
If 3-yr value-add plan, don't want 10-yr locked debt.
Interest rate risk and hedging
%
Floating rate? Rate cap in place? What if rates go up 200bps?
Recourse vs. non-recourse
%
Non-recourse preferred. Bad-boy carve-outs standard?

Question weights are relative within the section.

Sponsor's track record with similar assets
%
How many similar deals? What were the returns?
Property management experience and quality
%
In-house or 3rd party? Reputation? Tenant satisfaction?
Alignment of interests (co-investment, fees)
%
Sponsor putting in meaningful equity? Reasonable promote/fee structure?
Transparency and reporting quality
%
Monthly reports? Quarterly calls? Responsive to questions?
Sponsor's financial strength and stability
%
Balance sheet strength? Other fund commitments? Key-person risk?
Local market knowledge and presence
%
Do they operate in this market? Relationships with brokers, subs?

Question weights are relative within the section.

Entity structure and investor protections
%
LP/GP structure? Investor rights? Removal provisions?
Tax efficiency (depreciation, 1031 potential)
%
Cost segregation planned? 1031 exchange possibility at exit?
Title and survey cleanliness
%
Clean title? Any easements, encroachments, or liens?
Environmental and zoning compliance
%
Phase I clean? Zoning conforming? Any variances needed?

Question weights are relative within the section.

Downside protection in a downturn
%
Basis below replacement cost? Can you cover debt in a recession?
Rent control or regulatory change risk
%
Any pending legislation? State-level rent control movements?
Insurance cost and catastrophe exposure
%
Flood zone? Hurricane/earthquake risk? Insurance trending up?
Exit strategy strength
%
Multiple exit paths? Institutional buyer demand? 1031 buyer pool?
Construction and renovation risk
%
Contractor availability? Material cost volatility? Permitting delays?
Tenant demographic stability
%
Stable tenant base? High turnover risk? Section 8 or market rate?
Capital call risk
%
Is there a reserve budget? What if capex surprises hit?
Competing new development threat
%
Any Class A projects delivering nearby that could pull tenants?
Interest rate environment impact
%
How sensitive is the deal to rate changes? Refinance risk?

Question weights are relative within the section.

Overall excitement about this deal
%
On a visceral level, does this fire you up? Or feel like settling?
Trust in the people across the table
%
Would you want to be in a foxhole with these people? Eye contact, handshake feel.
Would this be your only investment this year?
%
If you could only make ONE bet, would it be this one?
Portfolio fit and strategic alignment
%
Does this complement our existing investments? Fill a gap?
LP/partner explainability
%
Could you confidently explain this to investors at the next meeting?
Too-good-to-be-true meter
%
10 = no suspicion at all. 1 = something feels off. Trust your spider sense.
Timing and urgency — is the window right?
%
Right time in the cycle? Market conditions favorable? Or are we chasing?
Differentiation vs. other opportunities
%
How does this compare to other deals you've seen recently?
Sleep-at-night factor
%
Can you sleep well after wiring the money? Or will it keep you up?
Regret minimization — would you regret passing?
%
In 5 years, would you kick yourself for not doing this deal?
Information quality — do you know enough?
%
Do you feel well-informed? Or are there big unknowns?

Question weights are relative within the section.